The BBMP has decided to levy a 2% land transport cess on property tax from April 1, pinching citizens still coping with the Covid-imposed economic stress.
The Bruhat Bengaluru Mahanagara Palike, which has been dragging its feet on the proposal fearing public backlash, hopes to rake in up to Rs 80 crore annually from the cess, which was approved by BBMP administrator Gaurav Gupta and the Urban Development Department.
“This was a proposal pending for months,” a senior official from the Revenue wing of the BBMP told DH.
The BBMP collects about Rs 2,500 crore to Rs 3,000 crore as property tax from over 18 lakh properties annually. However, unlike other cesses that the civic body collects, the BBMP cannot utilise the Urban Land Transport cess internally but must transfer it to the Department of Urban Land Transport (DULT) once in three months for the upkeep of pedestrian paths, bicycle tracks and other projects.
Currently, the BBMP levies library, beggary, health and solid waste management cess, which make up about 24% of the property tax.
Old proposal
The proposal, which was approved by the previous BBMP council in 2018, was put in abeyance fearing public backlash. However, rapped by the Comptroller and Auditor General (CAG) for failing to levy cess, the BBMP council, towards the end of its term, had sought the state government’s permission to utilise the cess internally for the upkeep of roads, drains and streetlights.
In the absence of the BBMP council, administrator Gaurav Gupta approved the proposal a few months ago and directed revenue officials to collect it from April. According to the CAG’s findings, by not collecting the cess, the BBMP had lost out on revenues worth Rs 95.63 crore between 2013-14 and 2016-17.